Local vs. Global social-couponing sites: a study of merchants’ satisfaction

Abstract

Purpose of the paper : In recent years, an increasing number of service providers have decided to run social-couponing campaigns. However, few studies have been conducted to investigate their satisfaction. More importantly, the results available are generally based on data collected from merchants that have run their social-couponing campaigns through the largest global daily-deals (Groupon, LivingSocial). Nonetheless, new local white-label-deals sites have entered the market. The purpose of this paper is to examine whether merchants’ satisfaction with social-couponing campaigns is different when using a local daily-deals site instead of a global site. Methodology : This study is based on a cross-sectional design. Data were collected through two surveys conducted in the Italian context: the first among 157 Italian merchants that had used Groupon; the second among 106 merchants that sold their coupons through Kauppa, a local daily-deals site operating in six Italian provinces. Findings : The results demonstrate similar levels of overall satisfaction for the two samples. However, significant differences between merchants using Groupon and Kauppa emerged in relation to the drivers of their satisfaction. Research limits : it should be noted that this paper is based on the comparison of merchants’ perceptions from two daily-deals sites: Kauppa and Groupon. Practical implications : merchants may decide to use either a global or the local daily-deals site depending on the specific objectives of the couponing campaign. Originality of the paper : The few studies about social couponing are based on data collected among merchants that have run their campaigns through the largest, global daily deals sites. To the authors’ knowledge this is the first research involving a local daily deal site.